How much home can you actually afford? This calculator uses standard lender guidelines — the 28% front-end ratio and 43% back-end debt-to-income ratio — to estimate the maximum home price you qualify for based on your gross income, existing debts, and down payment.
The 28/36 rule is a common affordability guideline: spend no more than 28% of gross income on housing costs (front-end ratio) and no more than 36% on total debt (back-end ratio). This calculator uses the more common modern guideline of 28% front-end and 43% back-end, which most conventional lenders use.
Yes. Enter your total monthly minimum debt payments (student loans, car payments, credit card minimums, personal loans) in the monthly debts field. This affects your back-end DTI ratio and reduces your maximum affordable home price.
Common reasons include high existing debts reducing your back-end ratio headroom, a high interest rate raising your monthly payment, a low down payment triggering PMI which counts toward your housing cost, or a high property tax rate in your target area.
Your credit score is not directly entered here, but it affects your mortgage interest rate — often by 0.5–1.5% across the credit score spectrum. A higher rate means a higher payment for the same loan amount, which lowers your maximum affordable price. Use the rate you expect to qualify for based on your credit profile.
Not necessarily. Lender guidelines show the maximum you can technically qualify for, not the amount that makes financial sense for your lifestyle. Many financial advisors suggest targeting 3–4x your annual income as a more comfortable ceiling, keeping housing costs well below the 28% threshold.